 We need to take more of those blue pills
Richard Daughty
...the angriest guy in economics
The Mogambo
Guru
Archives
February 23, 2005
- The week had a lot of interesting surprises, in my personal
Mogambo opinion (IMPMO), which is unique among the universe of
opinions, in that it is the only one that comes with the coveted
Mogambo Guarantee Of Worthlessness (MGOW), which itself costs
ten bucks, plus a shipping and handling charge of another ten
bucks, plus tax, tag and title, bringing the total to, let me
check that calculator again, fifty bucks, which is such a huge
premium over value (zero) that I ought to get some kind of prize.
But if I print on the face of the MGOW certificate the word "fifty"
and numerals "50", then you could use them as money
if you could find some other dimwitted guy who was ALSO willing
to use MGOWs as money to use in a trade, whereby I trade a worthless
MGOW certificate for fifty bucks worth of stuff, and then I quickly
haul it out of his store and into the trunk of my car and then
I beat it out of town.
The problem is that finding guys willing to take MGOWs as money
is the hard part, as people are not as stupid as you think, even
though you take a look at the socialists and class-warrior dorks
that they elect to our governments, and you think to yourself
"Whoa! These voters are idiots if they think that such things
are sustainable!" And yet nobody in the schools or the media
say anything any different, so they all must think that way,
too, and so you know right away those morons can't be that smart,
either. But (and this a little self-test) if you think that the
people who infest the schools and the media ARE smart, then that
says something ugly about YOU!
Then I discovered, quite by accident, that if I remind the guy
that I am armed and not in possession of all of my faculties,
then I can usually get them to go along with me on the MGOW-as-money
thing, especially when I remind him of what happened to that
Girl Scout troop who were selling cookies and refused to play
ball with me on this MGOW scheme of mine, and I distinctly told
them how this was a great "opportunity" which implies
a risk premium that has to be paid. But I guess they figured
that since they were just little girls and it was broad daylight,
that nobody would pick on them. Ha! They obviously did not figure
on The Mogambo, who has learned his lessons well at the feet
of layers and layers of government. Now, my target of choice
is ONLY the weak and defenseless. Naturally, they then usually
say "OK" and I can usually scarf down a whole box of
Thin Mints between the time anybody calls 9-1-1 and the time
the squad cars start showing up.
But now I sitting in a holding cell downtown, trying to convince
the police to, instead of harassing me, go after the REAL criminals!
So I am gently explaining to them, with charts and diagrams,
how they should go after Alan Greenspan, as he is the enemy of
our money and our country. So I am calmly saying things like,
"The Federal Reserve is destroying our money! Can't you
see that, you freaking idiots? Or is this the precinct where
they send all the morons, the cretins, misfits and the borderline
mentally-ill halfwits?"
Of course they look at me with that blank glazed look on their
faces and that powdered sugar on their chins. So I say, "Okay,
let me show you what I mean. Take a twenty dollar bill out of
your wallet. Now hold it up to the light and look just to the
left of the face on the bill." So he takes out a twenty,
and holds it up to the light, and while he is squinting at some
mysterious spot on the bill, I jump out of my seat, grab the
twenty, and tear it into tiny pieces with my teeth, snarling
like an enraged predator jungle cat as I am doing it, only with
more spittle and coughing, and my zipper was down, too, which
really spoiled the effect. Suddenly, he is screaming "Why
in the hell did you do THAT?" and I say "What? I didn't
do anything!" And he says, "Yes, you did! You tore
up my money!"
So, once again I have to take some of my valuable Mogambo time
(VMT) to explain to these numbskulls that I did not actually
destroy his money. I merely destroyed his aggregate buying power
by some small amount. But all the rest of his money still has
approximately the same buying power. So all he lost was a tiny
little bit of buying power! And what is a measly twenty bucks
compared to his total net worth, measured in the tens of thousands
of dollars, sometimes in the hundreds of thousand of dollars,
and sometimes measured in the millions and billions of dollars?
It's almost nothing! The fact is that he has been losing more
buying power than that every damn day of the week for the last,
let me check my watch here, ninety-two years since the horror
known as the Federal Reserve was created. And while I only devalued
his buying power by one lousy twenty-dollar bill, Alan Greenspan
has spent his life devaluing all of your dollars, and especially
so since 1998, and this horrible, twisted little man has issued
so much money and credit that it has grossly devalued ALL of
your dollars, and thus ALL your purchasing power, by an amount
that is a LOT worse! The mind reels! And he is whining about
one lousy double-sawbuck?
And thus I was particularly interested in how the Fed increased
Total Fed Credit by $7 billion last week, which isn't a lot,
but is a long way from any supposed "tightening." And
I was also very, VERY interested, registering a 5.7 on The Mogambo
Richter Scale (TMRS), which is a precise measurement of how out-of-line
something seems to be, in Total Public Debt, which means that
John Snow's Treasury Department issued a whopping $55 billion
of new debt in one week (insert video footage of a balloon being
blown up), $44 billion of that issued in (insert video footage
in fast-forward mode to show a balloon being quickly blown up)
ONE DAMNED DAY! (Insert video footage of me with head exploding
and getting all over the walls. NOTE TO SELF: erase the soundtrack
of wife screaming in the background "Oh, for the love of
God! Can't you do any damn thing that doesn't make a damn mess?
You clean that up! I'm NOT cleaning that up!" and I am yelling
back "Well, I'm not going to clean it up either, as I am
the artist! I am an artist, do you hear me? AND the producer
and the director, and I call the shots around here, and somebody
else cleans up the set after a shoot!" But I gotta remember
to save the part where she says "You want a shoot, do you?
You want a shoot? Well, I'll give you a shoot, you hateful little
bastard!" and then there is the sound of running and yelling
and doors slamming and glass breaking and me screaming, and then
a lot more running and doors slamming and gunshots and more screaming,
way off in the background, sirens).
But as I was saying, Gross National Debt ballooned to $7,701,022,542,261.61
(seven trillion, seven hundred and one billion and change) as
of 10:00 Tuesday morning. A week ago, on 2/14/2005, the figure
was only $7,630,849,109,540.36. This works out to $70.3 billion
in new debt in eight days, which is about six times par (the
average increase in national debt is about $2.2 billion per day)
for those jerks. As if we don't have enough to worry about, what
with Alan Greenspan and his ridiculous Federal Reserve destroying
our money by their insane over-issuance of money and credit,
blatantly encouraging us to plunge farther into un-payable debt,
but George W. Bush and his bunch of economic lunatics are smothering
us with MORE debt.
But I don't even mention this stuff to these moron cops. In professional
Mogambo mode (PMM), I keep gently explaining, explaining, explaining,
in simplified terms that even they can understand. I say "It's
happening right in front of your eyes! Or are you so stupid that
you can't even read numbers printed on a page, you moron fascist
pig cops? Watch my lips, and maybe it will sink into your thick
cop heads: Alan Greenspan is destroying your money! And when
your money is being destroyed, then the buying power of your
money is destroyed. And when the buying power of your money is
destroyed then, then it manifests itself chiefly in price inflation.
And when you get price inflation, then you buy less goods and
services with each paycheck, month after month, and then you
start looking for ways to cut expenses." Which is bad enough,
but it gets worse when pretty soon everybody is looking at MY
expenses, and the next thing you know everybody wants to know
is why I am spending so much time in run-down bars, getting drunk
as a skunk and complaining about the Federal Reserve, and how
if it wasn't for them we'd still have nickel beers, and you can
bet that as soon as I start talking about getting a tall, frosty
mug for five cents, suddenly everyone is all ears.
But while I am secretly longing for the quiet and darkness of
that seedy little bar and its all-Hank Williams jukebox, I realize
that will have to wait, as I am still trying to explain to these
policemen about the debasement of their money. "And then
you, and your families, and the whole economy and society will
be destroyed, because this is", I leap onto the desk as
part of my big Mogambo moment (BMM), "the Mogambo Iron Lesson
Of Economics (MILOE)! Namely, that when your money is destroyed,
then the next item on the agenda is YOU getting destroyed. But
you are arresting ME? Are you naturally stupid, or do you get
that way by sitting on your fat butts all day, eating donuts
and ignoring the Crime Of The Century!" Suddenly I am struck
that this is kinda catchy, and maybe I'll work that into a new
book! Yeah! I'll write a best-selling book! "The Crime of
the Century!" Yeah! That's my ticket outta this hellhole!
All about how the Federal Reserve issued so much money and credit,
which means that they financed the creation of huuUUUuuuuge amounts
of debt, lots of which went into seedy bars, proving that there
is always a silver lining somewhere!
And I am not the only one thinking about the dollar. Addison
Wiggin, of the DailyReckoning.com site, writes, "Just consider
that the dollar has 'only' fallen 8.3% the past year... but it
translates into a $124 billion loss for foreign stockholders!"
I know what you are thinking. You are thinking, "Who the
hell cares about a bunch of foreigner stockholders? Screw them!"
It is one thing for us Americans to be really stupid and think
that we can borrow and spend our way to Utopia. Only idiots can
believe that is possible, and so if you see a country trying
to do that, then you know that they are a bunch of idiots. It's
simple! Therefore, since we are doing it, we are idiots! We proclaim
it to the world "We're idiots!" It's not like we are
trying to hide anything, or that we had broken any laws, or cooked
up some bogus business plans to borrow money under false pretenses!
And yet these foreign morons are buying into our economy? Hahahaha!
And then they wonder why we laugh at them! And I am supposed
to get suicidal because they lost money investing with idiots!
Hahahaha!
He goes on to say, "But if history is any guide, this dollar
crisis could last seven to nine years." With my Patented
Mogambo ESP (PMESP), I see these little question marks appear
in your minds, and while Mr. Wiggin is far too busy and important
to answer questions from common riff-raff like you and me, I
will anticipate your question. "What is the result of losing
15% of your purchasing power per year over a period of only nine
years?" Well, it looks like a dollar will still possess
twenty-three cents of purchasing power at the end. In other words,
it would mean that your standard of living has dropped by 75%.
It will then take four dollars to buy the same basket of goods
and services that you could buy for a dollar nine years ago,
which is, paradoxically, today. Hahahahaha! Welcome to the world
of price inflation that follows a long and big jump in monetary
inflation, which we have had in spades under Greenspan!
And all of this increase in money is due to an increase in debt,
because that is how money springs into being. Again quoting Mr.
Wiggin, "Personal spending shot from $3.8 trillion in 1990
to $6.6 trillion in 2000 - a $2.8 trillion jump. Between 1990
and 2000, personal debt zoomed from $3.6 trillion to over $7
trillion - a $3.4 trillion increase." Now, an increase in
debt is bad enough, but it can be ameliorated by an increase
in income, right? So did income increase? Well, no really. Then
why did people go into so much debt? As usual, The Mogambo is
scratching his head, tying to come up with an answer when he
doesn't have a clue. But Mr. Wiggin thankfully comes to my rescue
and says, "People borrowed the money because they expected
their stocks to go up forever. They certainly weren't expecting
better pay. Salaries had only increased $2.1 trillion over the
decade."
So Alan Greenspan rammed interest rates into the toilet so that
people could go farther into debt, and thus afford to buy stuff,
and thus save the economy and the world. The upshot is provided,
again, by Mr. Wiggin, whom I am starting to really get peeved
at because I can't seem to get a word in edgewise here, "But
Greenspan made a big mistake. The problem wasn't that Americans
weren't borrowing or spending enough... the problem was that
they'd already borrowed and spent too much!" Exactly!
Jim Puplava at FinancialSense.com sees me and Mr. Wiggin yakking
it up about inflation, which reminds me that he as written one
of the more popular essays in recent weeks, and it is entitled
"The Three Faces of Inflation". He writes, "Inflation,
which is caused by excess money and credit, has three ways of
expressing itself through: rising consumer prices, rising asset
prices or a rising trade deficit." Sensing an opportunity
to run my own big fat mouth for a change, I say "And sometimes
all three at once!" I can tell by the looks on their faces
that they are not thrilled at my rude interruption, so I sit
back down in my chair and try to act like it wasn't me who interrupted
them.
Mr. Puplava goes onto say that history DOES sometimes repeat.
He writes, "What we are seeing unfold today is an all too
familiar pattern in history. All great inflations have a common
characteristic to them. We see the same sequence in development,
same price patterns, and similar movement in wages, rents, and
interest rates. They all begin in periods of prosperity and they
all end tragically. You can't debase money without consequences.
Like previous price revolutions, the most rapid price increases
appear in the price of energy, food, shelter, and raw materials.
These are the items most in demand during periods of population
growth and expansions in the supply of money. Demand starts at
the bottom of the consumption chain and then works its way upward.
Basic necessities are the least inelastic in their supply."
So where is he leading with this? Reading on, we discover where.
HE says "We are heading towards the terminal and final stage
of this price revolution that began in the 20th century. In the
final stages of price revolutions there are greater imbalances,
which create greater instabilities." He then provides us
with a quote from The Great Wave, by David Hackett Fischer. "Prices
surge and decline in swings of increasing amplitude. Markets
of many kinds-capital markets, commodity markets, labor markets-become
dangerously unstable. Production and productivity decline or
stagnate, while prices continue to rise; together these trends
create stagflation. Political instability increases, and with
it comes social disorder, internal violence and international
war. The cultural system becomes dangerously unstable; internal
conflicts of value and identity grow more intense." So,
would it be a good trading point to play the VIX? Apparently
so!
- Over at Kitco we see that gold lease
rates have risen dramatically, and have apparently bottomed.
Hmmmm. But before you declare the onset of the gold
bull, Paul van Eeden says "This rise in the gold price, as has been the case for the past three
years, is mostly a dollar phenomenon. It's a bear market in the
dollar, not a bull market in gold."
To which I add, "Not yet, anyway. But with all the countries
on the face of the freaking planet expanding their money supplies
with heart-stopping insanity, it soon WILL be a global bull market,
as price inflation will follow their monetary inflations, too!"
Speaking of inflation, I know that you are tired of me talking
about it. Now let's take a look at it up close and personal.
The latest report shows that the January monthly prices for imported
consumer goods (other than automobiles) increased 0.4 percent,
the most since January of last year.
The cost of ALL imported goods last month was 6 percent greater
than in January 2004. Excluding petroleum, they were up 3 percent
from the same month last year. The price of oil jumped 27% t
in the last twelve months! And today (Tuesday, 2/22) the price
of a barrel of crude jumped by over two bucks, to over $50 a
barrel! And while we are at it, let's take a look at producer
prices. As Bloomberg puts it, "The 0.8 percent increase
in the Labor Department's producer price index, excluding food
and energy, was the most in more than six years."
Eerily similar, the Yahoo! News report said, "The producer
price index, which measures prices received by farms, factories
and refineries, moved up 0.3 percent in the month, the department
said. But the core index, which strips out volatile food and
energy prices, shot up 0.8 percent, the biggest gain since December
1998."
For those of you who cannot bear the thought of being labeled
a gold bug or having any similarity to The
Mogambo for that matter, but still want to participate in the
price inflation, a reader code-named Shepardess notes that "The
MOST prized possession in post WWI Germany [and post WWII] was
cooking oil, cigarettes and booze."
- The Christian Science Monitor writes that, "Foreigners
worry about the stability of the dollar because Americans are
overspending. There's the growing budget deficit, of course.
But of equal importance for currency traders is the $617.7 billion
imbalance between what the US buys and what it sells abroad.
Americans are spending about 5.7 percent more than the nation
itself produces. At the moment, the US must borrow $55 billion
a month, $1.8 billion a day, to finance its massive deficit in
international payments. Over time, the decline in the dollar
should readjust that balance, since US exports will become more
competitive and imports more expensive." Which is exactly
what we are seeing!
- Thomson Financial, an information firm in New York, says that
"A boom in foreign purchases of US firms, now seen as a
bargain, may have started. Last year, 1,126 US businesses were
sold to foreign buyers, up from 1,032 in 2003 and 980 in 2002."
This is how Thomas Jefferson came to say something about how
fiat money will ruin us and that we will, and I am quoting from
memory "Wake up homeless on the continent their forefathers
gave them." They will have strong money and we will have
weak money, and thus they can buy us, lock, stock and barrel.
- One of the big arguments for privatization of Social Security
is that Chile has had personal retirement accounts for quite
awhile, and that "Established in 1981, Chile's personal
savings account system has yielded an average of 10 percent return
on investments. The primary investment vehicles are stocks and
corporate and government bonds." This is statistical quackery,
and do not listen to anybody who parrots this nonsense.
- A reader named Darrin sent an interesting little bit of research
that he has done. He writes, "Here's a little something
that I noticed a few months ago. Pennies dated 1981 and earlier
are 3.11 grams of 95% copper, or about 2.95 grams of copper.
Expressed in units that the rest of us understand, there is 1
pound of copper in 153.5 pennies. "The latest copper price
from kitcometals.com is $1.51 per pound. It is nearly worthwhile
to take the change jar and the kid's piggy bank to a scrap metal
dealer. "The people around me don't quite grasp currency
debasement, inflation, world markets, and all of that economic
stuff, but when I show them that even pennies aren't what they
used to be, it looks like they begin to get the message."
- A lot of people were watching Alan Greenspan testify at the
House Finance Committee, and like a lot of us, most thought it
was a laugh-riot. Peter Schiff of EuroPacific Capital is one
of them, and in an essay entitled "Greenspan Tells More
Whoppers" writes "Like a kid in a candy shop I don't
know where to start in refuting these claims. Perhaps the most
memorable moment of the entire spectacle was Congressman Ron
Paul quoting Greenspan to Greenspan, requiring the chairman to
admit that his younger self was wrong. Unfortunately, Greenspan
the younger was not wrong, just early. It seems only fitting
that in a testimony fraught with contradictions, Greenspan's
greatest critic was in fact himself."
Personally, I missed most of it, as I was caught up in the clutches
of the American healthcare system, and while I missed almost
all of the testimony, I am able to lend credence to the reports
that there are a lot of people on Medicaid and Medicare, because
let me tell you that it is the damn truth, as the only other
patients I ever saw, the whole damn time, were old and/or poor,
although all of them were better looking than me, and better
dressed than me, and smelled better than me, which none of them
seemed to tire of pointing out.
Apparently, I was the only guy in the whole system that had private
insurance. And if you think that puts you in the front of the
line, think again. Normally, it SHOULD give you a certain advantage,
as you, the epitome of all that is good and beautiful in America
and one of the few guys who actually shells out money for his
own health insurance, should be encouraged to move ahead in the
long queue for limited life-giving services, and you should be
allowed to step in front of deadbeat losers like them anytime
you want. And yet (and this is MY experience anyway), when you
make some stupid skinny old lady with her stupid IV bottle sit
on the damn floor so that YOU can take her nice, comfortable
chair in which to wait for the doctor to stop sexually harassing
the nurses, then everybody gets all huffy like I've done something
wrong! I mean, it's not like I'm hurting her! I even say to her,
"Hey, babe! Since you're down there, if you polish my shoes,
I'll pay you a quarter!" but she turns me down! She's old
and poor, and my taxes and my high fees are paying for her damn
"free" medical care, and yet she refuses to accept
gainful employment and maybe make a few bucks and maybe pay for
her own damn health insurance! And yet, somehow, she thinks SHE
is the victim here! It doesn't make any sense to me!
But I get a few minutes to quickly catch some of the testimony.
As soon as I walked in and turned on the TV and turn off the
VCR which is still in "pause" mode from where I was
screening a how-to video on making a machinegun out of old washing
machine parts (and believe me when tell you that the future,
the price of THAT particular videotape beauty is going to skyrocket
in price as we begin to pay for our economic sins!), my stomach
convulses into a knot, as there is Alan Greenspan listening to
a question and he licking his lips, with his beady, rat-like
eyes darting from side to side in panic, and I know that he knows,
although I don't know HOW he knows, but he knows that I am suddenly
watching him, and he senses that I am using my Secret Mogambo
Vision (SMV) to stare into the foul darkness of his soul, a soul
so corrupt that is going straight to Hell when he dies for sinning
against the Eleventh Commandment, "Thou shalt not debase
thy money", which is one of the little-known and long-suppressed
Missing Commandments, recently discovered by me, The Mogambo,
while using a variation of the Da Vinci Code search algorithm
to find hidden messages in the Bible. The theory is that God
gave Moses more than Ten Commandments, but the others weren't
very popular, and so the tablets were put into the basement of
one the government buildings and forgotten.
But the mystery of the Missing Commandments is now revealed,
thanks to the Da Vinci code, which involves going through every
page looking for "hidden" words that are written backwards,
or diagonally across the page, or something. Unfortunately, as
it is being used now, it is a very labor-intensive process, and
so therefore very unpopular with lazy guys like me, who want
instant fame and fortune for doing as little as possible and
who are upset and angry when we don't get them, and people call
us childish, and make fun of us, and pretty soon my own family
won't sit with me in restaurants because the restaurant always
has this convenient "policy" where they can refuse
service to anyone, and that apparently includes older men screaming
and crying and kicking and whining because he didn't get as much
love and money as he wanted.
But in a moment of "Eureka!", I was inspired to hurry
things up, and forthwith I invented the Mogambo Method Of Enhancing
The Da Vinci Code Search Engine (MMOETDVCSE). It's all very complicated,
of course, but in essence I go through the Bible and circle those
words and letters that spell out what I want to find, going page
by page, and searching for letters only in that area of the page
that corresponds to using a roughly sine wave function that goes
on page after page, because when you print out my results on
a computer, man! It looks impressive as hell! This beautiful
regular pattern is going up and down the page, like some undulating
wave out on a gently rolling ocean. It screams "Proof!"
which in itself screams "Nobel Prize for The Mogambo, because
he could sure use the money!"
The essence of this Missing Commandment is "Money shall
be only gold and silver"
which is eerily echoed in the Constitution of the United States
itself, a point that I will bring up in my next book, "The
Mogambo Explains How the Founding Fathers Knew of the Missing
Commandments". But you can see that governments, being the
dirt bags that they naturally are, would not like the idea of
not being able to print up as much money as it wanted, anytime
it wanted, to spend on anything it wanted. As for other Missing
Commandments, details are sketchy, but one of them seems to be
something about "Thou shalt not secretly lust after high-school
cheerleaders unless you are likewise a high-school boy or high-school
lesbian". To tell you the truth, I find this one to be a
little hard to obey, too, and if this is an example of Missing
Commandments, then you can see why I have lost interest in pursuing
this whole line of Biblical investigation.
But I'm looking at the TV screen and you can see by the expression
on his face that his heart has turned to some mutant, stone-like
material like the stuff that must be clogging up the arteries
in his brain when he realizes that The Mogambo is out there,
watching his every move, and it is not going to be pretty, because
I am going to criticize his every word, deed and action, tearing
his ass up every chance I can. And if I don't get any chances,
then I will make up some lies about him that I hope will get
him in trouble, and that brings up my brilliant Mogambo insight
(BMI) that all our economic problems could have been prevented
if we had appointed someone younger to be the chairman of the
Federal Reserve, instead of Alan Greenspan, who is a zillion
years old, and if we had instead appointed a YOUNGER Fed chairman,
then I could call up his mother and tell HER what her idiot son
is doing, and SHE could do the rest for us!
But one line that keeps ringing in my head is when Alan Greenspan
said that maybe one reason why foreigners keep buying American
debt is that our debt is so safe. Well, as far as getting money
back and paid, then, yes, I guess it IS "safe." After
all, as long as we have paper and ink, we can always print you
up as many dollars as you like! And with electronic blip money,
the creation of more and more money is even easier.
But this is not the Mogambo definition of "safe", as
my definition of safe is that I am saving buying power, and I
expect to get all my buying power back, with interest. For example,
suppose that I am on my way to the army surplus to get that spiffy
self-propelled cannon that I have had my eye on, when I am accosted
on the street by a guy who convinces me to take that money, "invest"
that money in some American debt, and in a few years I get all
my money back, and a little something extra to pay me back for
the pain of having postponed the gratification of consumption
for those few years, and then I will have enough money to buy
the cannon AND a few rounds of that special ammunition that they
keep in the back storeroom that they don't tell anyone about.
THAT is how it is supposed to work, as interest rates typically
are higher than both inflation and tax reduction added together.
Nowadays, interest rates are, as hard as it is to believe, less
that the sum of these two! People who are idiotically "investing"
in US debt are voluntarily losing purchasing power, because the
dollars they get back after all those years won't buy squat!
Hahahaha! Suckers! They are voluntarily making themselves less
wealthy! That IS a conundrum! But as it is REALLY working, the
chump who buys American debt will only get back enough money
to buy half of a cannon! Hahahaha! So you have suffered the pangs
and regrets of postponing glorious, delicious, wonderfully satisfying
consumption, but you also lose half a cannon!
In fact, he said as much! He said: "We can guarantee cash
benefits as far out and at whatever size you like, but we cannot
guarantee their purchasing power." But he can! He is guaranteeing
less purchasing power by his every word and deed since 1998!
Ron Paul asked him whether
a gold standard would prevent the government
from amassing such huge debts. He replied, "I think
we have been remarkably successful, in my judgment mimicking
much of what the gold standard does I think in that context
so far we have maintained a stable monetary system." Hahahaha!
What an idiot! His monetary system has ZERO is common with a
gold standard! What does he think we are?
A bunch of chumps that we don't know what a gold
standard is? Hahahaha!
Then he REALLY goes bananas when he says, "I do not think
that you could claim that the central bank is facilitating the
expansion of expenditures in this country" Hahahaha! I am
laughing so hard in contempt and rage I am spitting up blood!
What a lying moron!
- Proving that some people cannot seem to ever learn, I have
been invited by David Bond, of TheSilverInvestor.com, to be the
keynote speaker at the 2005 Silver Summit this September, held
in Coeur d'Alene Idaho, even though he was the guy who invited
me there last year, and so he knows perfectly well how I am,
and how I get, and how I was, and how I got, and there is no
reason to think I will be any better than that this year, and
probably a lot, lot worse. Please do not contact me about how
to register your righteous outrage, as justified as it may be,
and this includes coming right to my house to register your noisy
complaints, as I always end up expending too much expensive ammunition
in the course of my polite rebuttals.
And if you DO plan to attend, all I can say is that you will
probably never forget it, no matter how much you want to, or
how many years of expensive therapy, drug use and heavy alcoholic
consumption you devote to trying to erase the memory from your
mind. At least that is what LAST year's attendees are whining
about.
- AMERICAN ECONOMICS: You have two cows. You sell one and force
the other to produce the milk of four cows. You profess surprise
when the cow drops dead. You put the blame on some nation with
cows, and naturally that nation will be a danger to mankind.
You wage a war to save the world, and grab the cows."
Substitute cars for cows, and substitute oil for milk. Then finally,
substitute Iran for "some nation with cows," and
then you will know why it is only a matter of time before we
invade Iran, which was the whole point of Condoleeza Rice's visit
to Europe, as far as I can tell.
Don't believe me? Well, I'm proud of you! That shows that you
have SOME smarts, after all. But perhaps you will listen to the
Aden Forecast: "These
big commodity price rises have always coincided with major wars
throughout history. And the current rise will probably coincide
with the war on terror. In other words, wars and/or geopolitical
tensions will likely increase in the years ahead."
Ugh.
***** The Mogambo Sez: - The NYSE Specialists are suddenly
now getting very short, and if you think that this a sign to
go short, then you are thinking like I think, which usually means
that you aren't taking enough of those blue pills.
And did the recent zoom of gold and
silver prices makes you think that maybe
you ought to get some of each? If so, then good for you, because
it shows you are paying attention! And people who pay attention
tend to prosper!
Feb 23, 2005
Richard Daughty
email: scgcjs@gte.net
Archives
The
Daily Reckoning
Richard Daughty
is general partner and C.O.O. for Smith Consultant Group, serving
the financial and medical communities, and the writer/publisher
of the Mogambo Guru economic newsletter, an avocational exercise
the better to heap disrespect on those who desperately deserve
it. The Mogambo Guru is quoted frequently in Barron's, The
Daily Reckoning
and other fine publications.
321gold Inc
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